In: Operations Management
Ryanair is seen as the lowest-cost airline in Europe. Although there are a number of low-cost airlines that are providing its services in Europe, even then Ryanair is able to ensure and maintain its low-cost service to the customers and have the cost leadership in the industry. The main competitive advantages of Ryanair can be seen as its capability to control the costs so that the low fees can be maintained and at the same time generating enough profit for the airlines. Ryanair is able to do this by the following methods-
Fleet standardization –The fleet of Ryanair mainly includes Boeing 727 and by having only one type of aircraft, the company is able to control these costs of maintenance and other related services.
Contracting out of services –The third-party contractors are used by the airline for the efficient management of aircraft handling, baggage handling, and other related activities. By the use of the third [art contractors, the different types of costs and workforce-related disputes are overcome or neglected
Airport charges –In order to minimize the airport charge, the airline does not connect the main city airports while it uses the smaller secondary region airports
Staff costs and performance –The performance-related pay structure is used by the airline to manage its compensation to the employees. This will ensure that the employees put their best on the job
Marketing costs – Media and website of the airline itself is used for the advertising